Bauer: Property tax rebate checks coming

Money to be issued after state receives licensing fees from slots.

Money to be issued after state receives licensing fees from slots.

May 12, 2007|JAMES WENSITS Tribune Political Writer

SOUTH BEND -- Homeowners eventually will get a property tax rebate check, but not until late this year or early next, state Rep. B. Patrick Bauer, D-South Bend, explained Friday. The rebates are part of an estimated $550 million in property tax relief approved by the recently-ended session of the Indiana General Assembly. The rebate money is to come from licensing fees that are to be collected by the state in connection with the installation of slot machines at each of the state's two race tracks. But, according to Bauer, the rebates can't be sent to residents until the fees are paid and the state actually has the money in hand. "That's why we'll wait to give it back after we get the money," said Bauer, who was speaking at a Friday afternoon news conference. As planned, homeowners will pay what are expected to be higher property tax bills, then get a rebate check near the end of the year or possibly in January. The higher property taxes are expected to result from a new technique known as trending, which is essentially a kind of annual reassessment. Another tax reduction is planned for next year but will be reflected in tax bills instead of in refund checks. Bauer, speaker of the Indiana House, called the news conference to promote the new state budget bill, which was signed into law by Gov. Mitch Daniels earlier in the day. "The governor signed the bi-partisan budget bill today. I think it's a great success for the state of Indiana," Bauer told reporters. The budget was passed by a bipartisan mix in the Senate but needed the support of all 51 Democrats in the House because that body's 49 Republicans voted against passage. In addition to property tax relief, Bauer noted that the budget will provide $39 million to fully fund textbook costs for children who receive free and reduced-price lunches. Bauer said the budget will increase funding for K-12 schools as well as higher education. The higher education budget will provide $27 million to renovate a classroom building at Indiana University South Bend as well as partial funding for a cancer research center, Bauer said. Bauer also touted the passage of House Bill 1478, which was designed to offset some of the effects of last year's Circuit Breaker legislation. A feature of the bill is to give local governments the power to pass new local option income taxes to replace or reduce property taxes. Bauer said local governments have until Aug. 1 to approve the new taxes and that passage would be required by a "majority of the legislative bodies" that represent more than 50 percent of the county's assessed valuation. That would apparently mean some combination of the St. Joseph County Council and/or the South Bend and Mishawaka city councils. Steve Ross, D-2nd, county Board of Commissioners president, said Friday that he is seeking a commissioners-County Council meeting to discuss implications of the legislation. Ross also expressed concern that passage of a new income tax has the potential to be "political suicide" for those who support it unless the public understands and agrees that there is a long-term benefit if the tax is used to decrease property taxes. Staff writer James Wensits: jwensits@sbtinfo.com (574) 235-6353